Magnetic nanoparticles (MNPs) have potential for a number of biomedical applications due to their inherent ultra fine size, biocompatibility and superparamagnetic properties. However, conventional iron oxide nanoformulations stabilized by natural/synthetic polymer or encapsulated in micro/nanogels, colloidosome/liposome, micelles, microcapsules, or transfecting reagents (cationic lipids, polylysine, and protamine sulfate), etc. have exhibited poor efficacy of drug loading or rapid release of drug molecules, loss of magnetization properties and often increase the particle size of the formulation. Some of these complexes are unstable and tend to aggregate in reaction tubes or even precipitate in the cell culture medium, resulting in cytotoxicity. Such formulations eventually lead to rapid clearance from the body's circulation by the reticuloendothelial system (RES) and limit the efficacy of magnetic nanoparticle-mediated drug targeting ability. Limited efforts have been made toward developing a universal combined formulation for cancer applications. Therefore, developing a multi-functional magnetic nanoparticle formulation which does not compromise basic characteristics is highly desirable.